Management of the Catering Company would like the Food Division to transfer 10,000 cans of its final product to the Restaurant Division for $30. The Food Division sells the product to customers for $70 per unit. The Food Division's variable cost per unit is $35 and its fixed cost per unit is $10. If the Food Division has 7,000 units available capacity, what is the minimum transfer price the Food Division should accept? $50 O $35 ○ $45.5 $70 None of the above
Management of the Catering Company would like the Food Division to transfer 10,000 cans of its final product to the Restaurant Division for $30. The Food Division sells the product to customers for $70 per unit. The Food Division's variable cost per unit is $35 and its fixed cost per unit is $10. If the Food Division has 7,000 units available capacity, what is the minimum transfer price the Food Division should accept? $50 O $35 ○ $45.5 $70 None of the above
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Management of the Catering Company would like the Food Division to transfer 10,000 cans of its
final product to the Restaurant Division for $30. The Food Division sells the product to customers for
$70 per unit. The Food Division's variable cost per unit is $35 and its fixed cost per unit is $10. If the
Food Division has 7,000 units available capacity, what is the minimum transfer price the Food
Division should accept?
$50
$35
$45.5
O $70
None of the above
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